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Maine Paid Family Leave Tax
Maine Paid Family Leave Tax

How to set up the employer and the optional employee ME PFML tax

Updated over 3 weeks ago

By default, the tax engine will assume that the employer is contributing the entire amount.
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To change this, you'll need to adjust the company's Employer Taxes.
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While the total tax amount is ultimately the employer's responsibility, the employer may require the employee to contribute a portion of the total amount due:

  • Employers with 15 or more covered employees are responsible for the entire 1% premium, but may deduct up to 50% of the premium, or 0.5%, from the employee wages.

  • Employers with fewer than 15 employees are responsible for only 50% of the premium, or 0.5% total, but may deduct up to 100% of that amount from employee wages.

In the company's Employer Taxes, there's an input for the # of employees. It will default to 15. If you change it to < 15, the total tax amount is reduced from 1% to 0.5%.

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To tax the employees, change the "Employee Elected Percentage of Employee Contribution" box. You don't need to edit the "Tax rate".

Use the Tax Summary in Reports to see both the employee and employer taxes per paycheck:

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